Jerome Powell

BOSTON — Former Federal Reserve Chair Jerome Powell used one of his first major public appearances since leaving office to defend independent institutions while accepting an award Sunday honoring his efforts to preserve the central bank’s independence.

Speaking at the John F. Kennedy Presidential Library overlooking Boston Harbor, Powell called universities, courts, Congress and the central bank “the foundation and the embodiment of our democracy” and argued that the Fed’s independence was a “priceless asset” that must be protected.

It was one of his most direct defenses of Fed independence, warning that a single administration’s decision to remove bank officials over policy differences would open the way for future elected officials to follow suit, ultimately undermining the credibility that the Fed has spent decades building.

Powell, who frequently clashed with President Trump during his eight years as chair, stepped down as his term expired in May. He was succeeded by Kevin Warsh, whom Trump selected to lead the central bank.

After stepping down as chair, Powell took the unusual step of keeping his seat on the Fed’s governing board, which he has until January 2028. By doing so, he has deprived the Trump administration of an opportunity to appoint another member of the board.

The Trump administration has also sought to fire Fed governor Lisa Cook, which would open an additional seat on the rate-setting committee the president could fill. Yet Cook sued and the courts have so far let her keep her seat.

While Powell never mentioned Trump by name Sunday, he repeatedly returned to the importance of protecting institutions from political pressure and preserving public trust in their independence.

“Like many other institutions, the Fed has been undergoing a stress test,” he said. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same.”

Since 1989, the John F. Kennedy Profile in Courage Award has recognized public servants who make what the foundation describes as courageous decisions of conscience despite personal or professional consequences.

Previous recipients include former Presidents Barack Obama and George H. W. Bush, Ukrainian President Volodymyr Zelensky and former Vice President Mike Pence.

In March, the foundation said it was awarding Powell for protecting the independence of the Federal Reserve “despite years of personal attacks and threats from the highest levels of government.”

Trump harshly criticized Powell throughout his tenure as chair, frequently attacking the Fed’s interest-rate decisions and urging the central bank to cut borrowing costs more aggressively.

Beyond the Federal Reserve, Powell defended U.S. universities and research institutions, the Constitution, Congress and the court system.

“The United States has long been the leader of the world’s freedom-seeking people — the indispensable nation. Other countries know us as a nation built on integrity, and that integrity must be maintained,” he said.

In his remarks, Powell indirectly acknowledged mistakes as chair. The Fed is legally required to seek stable prices, but inflation surged amid the pandemic’s supply chain crunch. Many economists believe the central bank should have raised interest rates more quickly in response.

“At the Fed, we are, of course, human and thus imperfect,” Powell said. “When we make mistakes, we acknowledge them and change course.”

Powell was honored alongside residents of Minnesota’s Twin Cities, who received the award for what the Kennedy Foundation described as acts of courage during a federal immigration crackdown that led to thousands of arrests and the deaths of Minneapolis mother Renée Good and nurse Alex Pretti, both of whom were killed while observing or documenting enforcement activity.

“It’s wonderful just to be invited, honoring Renée,” Good’s father, Tim Granger, said as he entered the library with family members.

Kennedy’s only surviving child, Caroline Kennedy, and her son, Jack Schlossberg, said in a statement that without people like Powell and those in Minnesota “willing to put their lives on the line to hold America to its promises, our democracy can’t survive.”

Attendee U.S. Sen. Amy Klobuchar, who is running for governor of Minnesota next year, reflected that the award was unusual because it recognized ordinary residents rather than elected officials.

“This didn’t go to an elected leader for a reason,” Klobuchar said. “It’s because the people stood up. They stood up by marching 50,000 strong. They stood by bringing kids they didn’t even know — strangers’ kids — to school, by bringing them groceries and they didn’t blink. And that’s what this award is about. It’s about courage.”

Willingham writes for the Associated Press. AP journalist Christopher Rugaber contributed to this report from Washington.

WASHINGTON — President Trump on Friday oversaw the White House swearing-in of the new Federal Reserve chair and said he would like Kevin Warsh’s help in stimulating the economy even as he tried to emphasize that the nation’s central bank would remain independent.

Trump spent months criticizing Warsh’s predecessor, Jerome Powell, for being reluctant to cut interests rates, with the Republican president arguing that lower borrowing costs would provide an economic boost. By taking the unusual step of holding the ceremony in the East Room and not the Fed, Trump made clear his pleasure that Warsh is now in charge.

The war with Iran has caused gas prices to spike, unsettled financial markets and driven inflation concerns across the economy. Those developments have led to recent doubts about whether Warsh might heed Trump’s calls and push the Fed to lower rates.

Still, Trump said he had faith that Warsh would prioritize a strong economy.

“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is, that’s a good thing,” the president said. Trump said it was not necessary “to go crazy. Just let it go. We want it to boom.”

Supreme Court Justice Clarence Thomas administered the oath of office. Also on hand were House Speaker Mike Johnson (R-La.), Justice Brett Kavanaugh, CIA Director John Ratcliffe and Cabinet members.

“I expect he will go down as one of the truly great chairmen of the Federal Reserve that we’ve ever had,” Trump said of Warsh.

Republican President Reagan swore in Alan Greenspan as Fed chair at the White House in 1987. Republican President George W. Bush attended the 2006 ceremony at central bank headquarters when Ben Bernanke became chair.

But having the event at the White House raises more questions about the Fed’s independence at a time when Trump has constantly sought to bend the independent central bank to his will.

Trump’s Department of Justice began an investigation into Powell and the Fed’s extensive building renovations. That drew backlash from lawmakers and the department scrapped the investigation. The Fed’s internal watchdog is now handling the matter. Powell’s term as chair ended last week, though he has opted to remain on the Fed board for now.

Trump made a point of saying during his remarks, “Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent.”

“I want him to be independent and just do a great job,” Trump said. “Don’t look at me, don’t look at anybody. Just do your own thing.”

In the next breath, however, Trump said that “in the eyes of many, the Fed has lost its way in recent years” under his predecessor, Democratic President Biden. Trump also suggested that Warsh is looking to lead policies that promote “positive economic growth” and that doing so did not have to mean higher inflation.

Trump also noted that the stock market had risen Friday. “That means they like you,” he said of Warsh.

Warsh once harshly criticized Fed’s policies, including its low interest rate policies coming out of the pandemic, which he says contributed to the largest U.S. inflation spike in four decades in 2021-22. More recently, he has sometimes echoed Trump’s demands for lower rates.

Warsh says productivity gains from artificial intelligence will help the economy grow more quickly without spurring inflation, enabling the Fed to reduce borrowing costs. Many Fed officials, however, disagree that AI’s development will support rate cuts, especially because the technology has also been blamed for large-scale layoffs in the computer sector and other parts of the economy.

On Friday, Warsh promised “to lead a reform oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.”

He told Trump that he believes “these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life. And the Fed has something to do with it.”

Warsh further noted that the Fed’s mandate “is to promote price stability and maximum employment. When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower; growth, stronger; real take home pay, higher and America … more prosperous.”

As he left the ceremony, Treasury Secretary Scott Bessent reinforced Trump’s message, predicting to reporters that Warsh will “do the right thing for inflation and growth.”

Weissert and Price write for the Associated Press.

May 13 (UPI) — The U.S. Senate voted to confirm Kevin Warsh on Wednesday as the new chairman of the Federal Reserve. Warsh, who was nominated by President Donald Trump, succeeds Jerome Powell, who has been frequently criticized by the president for not lowering interest rates in accordance with Trump’s demands.

The Senate voted 54-45 to confirm Warsh in the most partisan vote for a chair nominee in history, CNN reported. Sen. John Fetterman, D-Pa., was the only Democrat to vote in favor of the confirmation.

Warsh will be the 17th chair of the central bank, which is traditionally politically independent. However, Trump has aimed a great deal of criticism at the Fed and its governors over that independence, insulting Powell harshly at times and threatening to fire him.

The president also supported a Justice Department investigation into Powell, allegedly over costs for the central bank headquarters renovation. Powell has said that Trump targeted him because of the Fed would not follow his orders on interest rates. The Justice Department dropped the investigation in late April.

Democrats have expressed concerns about Warsh’s independence from Trump if confirmed. The new Fed chair has said he will be “an independent actor” but also promised a “regime change” at the central bank, The New York Times reported.

Warsh is the wealthiest Fed chair nominee in recent history, with a net worth over $100 million. He is married to Jane Lauder, who is an heir to the Estee Lauder fortune, and also has about $192 million in assets in combination with her.

Warsh said that he would divest a large amount of his assets and resign from several positions if confirmed. He also served as a governor at the Federal Reserve from 2006 to 2011.

Powell’s term as chair ends Friday, but he has said he’ll stay as a fed governor for his remaining two years.